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Aarti Drugs Ltd

NSE: AARTIDRUGS BSE: 524348

367

(-0.65%)

Wed, 11 Mar 2026, 03:12 am

Aarti Drugs Analysis

dividend

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Pros

  • Dividends after 3 years are expected to be thoroughly covered by earnings (10.2x coverage).
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Cons

  • Aarti Drugs is not paying a notable dividend for India, therefore no need to check if the payments are increasing.
  • No need to calculate the sustainability of Aarti Drugs's dividends as it is not paying a notable one for India.
  • Aarti Drugs is not paying a notable dividend for India, therefore no need to check if the payments are stable.
  • Aarti Drugs's pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Aarti Drugs's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Aarti Drugs's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Aarti Drugs's earnings are expected to exceed the low risk growth rate next year.
  • Aarti Drugs is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN Pharmaceuticals industry average.
  • Aarti Drugs's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Aarti Drugs is expected to decrease over the next 2 years.
  • Aarti Drugs's earnings are expected to grow by 15.3% yearly, however this is not considered high growth (20% yearly).
  • Aarti Drugs's earnings growth is positive but not above the India market average.
  • Aarti Drugs's net income is expected to increase but not above the 50% threshold in 2 years time.
  • A decline in Aarti Drugs's performance (ROE) is expected over the next 3 years.
  • Aarti Drugs's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Aarti Drugs's revenue is expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Aarti Drugs is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Aarti Drugs is profitable, therefore cash runway is not a concern.
  • Aarti Drugs is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (74.2%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 2.7x debt.
  • Aarti Drugs's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (145.4% vs 51.8% today).
  • Interest payments on debt are well covered by earnings (EBIT is 6.3x coverage).
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Cons

  • Aarti Drugs's level of debt (51.8%) compared to net worth is high (greater than 40%).
  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Aarti Drugs board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • Prakash's remuneration is lower than average for companies of similar size in India.
  • Prakash's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The average tenure for the Aarti Drugs management team is over 5 years, this suggests they are a seasoned and experienced team.
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Cons

  • Aarti Drugs individual insiders have sold more shares than they have bought in the past 3 months.

misc

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Pros

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    Cons

    • Aarti Drugs has significant price volatility in the past 3 months.

    past

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    Pros

    • Aarti Drugs's 1-year earnings growth exceeds its 5-year average (57.6% vs 9.8%)
    • Aarti Drugs's year on year earnings growth rate has been positive over the past 5 years.
    • Aarti Drugs used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.
    • Aarti Drugs has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Aarti Drugs has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
    • Aarti Drugs's earnings growth has exceeded the IN Pharmaceuticals industry average in the past year (57.6% vs 22.7%).
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    Cons

      value

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      Pros

      • 524348 outperformed the Pharmaceuticals industry which returned 26.7% over the past year.
      • 524348 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:524348 is up 16.4% outperforming the Pharmaceuticals industry which returned 6.8% over the past month.
      • BSE:524348 is up 16.4% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Aarti Drugs's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Aarti Drugs's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Aarti Drugs is overvalued based on assets compared to the IN Pharmaceuticals industry average.
      • Aarti Drugs is poor value based on expected growth next year.
      • Aarti Drugs is overvalued based on earnings compared to the IN Pharmaceuticals industry average.
      • Aarti Drugs is overvalued based on earnings compared to the India market.

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